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HomeMy WebLinkAbout0212 ~orrower and Lender covenant and agree as foUowr 1. Paymeat of Princlpal and Interes~ &,ROwer shall promptly pay when due the principal of and intereyt un the indebtedne.s evidenced by ths Note, ptepeyment end late charges as provided in the Note, and the p~ncipal of and inte~eat on aoy ~ture Advances aecured by thi~ Mortgage. 2. Ftindr tor Ta:ee and inrurance. Subject to applicable law or ta e writte~ waiver by I.ender,l3orrower shall ~?y to I.ender on the day monthly inetallm~nta oi principal and intercat are payable under the Note, until the Notc is paid in full, a aum (herein "Funds") eQual to one tweltth of the yearly texe~ and esaeaementa which may attain priority over this Mortgage, and ground re~te on the Property, if any, plus o~e~ ' twelfth of yearly premium inxtallments for hazard ineurance, plue onetwelRh ofyearly premium inatallme~ts [or mortgage ineu~ance, i[any. all as reasonably eatimated initiaUy and from time to time by l.ender on the baeie of aaseeamenta end billa a~d reusonabie eatimates thereoi. 'l1~e i~nds ahall be held in an institution the deposits or accounta of which are inaured or guaranteed by a Federal or State agency (including Lender it Lender is such an inetitution). t,ender ahell appiy the Funds to pay said taxee, asseaements, insurance premiums and ground nnb. I.ertder may not charge for w holding and applying the I~nds, analyzing esid account, or verifying and compiling said asaesements and bills, unleee Lender pays Borrowe~ intereat on the Funda and applicable law permite I.e~der to make such a charge. Born,wer and Lender may agree in writing at the time of execution of this Mortgege that intereal on the FundB ehall be paid b IIorrower, and unleas auch agrcement is made or epplicable law requires such inlereat to be paid. Lender shall not be ~equired to pay Borrower any interest or earnings on the ~nds. Lende~ shall give to Borrower, without charge, an annual accounting o[the Funda ehowing credita and debits to the Funds and the purpoee [or which each debit to the Funds wae made.'R~e Funds are pledged as additional eecurity for the sums eecured by thia Mortgage. If the amount of the Funde held by I.ender, together with the [uture monthly inatallments oiFunde payable priorto the duedatee of taues, assessments, insurance premiums and ground reota, ehall e:ered the amount re~uired to pay said taxea. anaeasments. inaurance premiwpa and ground renta as they faU due, auch e:cesa shall be, at Borrower'e option, either promptly repaid to Borrowet or credited to Borrower on monthly in~tallments of F~nds. If the amount of the Funda held by Lender shall not be sufficient to pay taxes, assessmente, insurance premiume and ground rents as they fall due, Borrower shaU pay b Lender any amount neceseary to make up the deficiency within 30 daye from the datc notice is mailed by [.ender to Borrower requeating payment thereof. Upon payment in full of all suma secured by this Mortgage. Lender ehali prompdy refund to Borrower any funda held by l.ender. If under paragreph 18 hereof the Property ia eold or the Property ia otherwise acquired by Lender, i.ender shaU apply, no tater than immediately prior to !he sale of the Property or its aoquiaition by Lender, any I~nda held by Lender at the time of appliration as a credit againat the eume aecured by thie Mortgage. ~ 3. Applicatlon .ot Payments. Unless applicable law providee otherwise. aU paymente received by l.ender under the Note and paragraphs 1 and 2 heteof ahall be applied by I.ender firxt in payment otamounte payable to (.ender by Boaower undet paragraph 2 hereof, then b intereet payable on the Note, then to the principal ot the Note, and then to intereat and principal on any Future Advancea. 4. Charges; Liene. Borrowerahall pay alt taxea, asaeesments and other ch~~es. ~inea and impositions atlributable to the Property which may attain a priority over thie Mortgage, and leasehold payments or ground rents, itany, in the manner provided under paragraph'L herevf or, i[ not paid in auch manner, by E3orrower making payment, when due, directly to lhe payee thereoL Iiorrowershall prompt.~µ furnish to Lender all notices o[amounta due under thie paragraph, and in the event E3orruwer ah~Yll make payment directly, Aorrowerahnll prompdy furniah to I.ender receipts evidencing such paymente. Borrower shall promptly diacharg~ aay lien which has priority over this Mdrtgage; provided, that ~ Bc~rrower ahall not be required to discharge any euch lien so long as Burrower shaU a~ree in writin~~othepaymentof ihe abligation secured by euch lien in a manner acceptable to I.ender, or shall in good faith conteat auch Ifen by, or defend enforcement ofsuch lien in, legal procee~dings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Iaeurance. Bormwer shall keep the improvemente now exieting or hereafter erected on the Property ineured against loss by fire, hazards included within the term "extended coverage; ' and euch other hazards ae I.ender may require and in such amounte and for such periode aa Lender may require; provided, that [.ender ahall not requim auch ooverage amount exceeding the minimum, as may be required by eiate or federal regulationa governing activitiee of l.ender, or that amount of coverage required to pay the auma secured by thie Mortgage, whichever is the greater. The insurance carrier providinq the inaurarice ehall be chosen by I3orrower subject to approval by I.ender, provided, that auch approval shall not be unreaeonably withheld. All premiuma on inaurance puliciea ahall be paid in the manner pmvided under paragrs~ph `l hereof or, if not paid in such manner, by Sorrower making payment, when due, directly to the ineurance carrier. All inaurance policies end renewals thereotahall be in form acceptable to Lender and shal! include a atandard mortgage clauae in favor of , and in form acceptable to Lend~. Lender ahall have the right to hold the policiea and renewala thereof. end Borrower ehall promptly furnish to ~ i.ender all renewal notices and all receipte of paid premiuma. In the event of lose, Borrower ehaU give prompt notice to the ineurance carrier . ~ and Lender. Leniler may make proof of lose if not made prompdy by Borrower. ~ Unlesa Lender and Botrower otherwiee agree in writing, insurance proceeda ahal) be applied to restoration or repair of the Property ~ dameged, provided euch reatoration or repair ie economically feasible and the eecurity of this Mortgage is not thereby impaired. If such restoration or repair ia not economically feasible or if the security of this Mot tgage would be impaired, the insurance proceede shall be applied ~ to the eume secured by thie Mortgage, with the excees, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower fails to reapond to Lender within 30 days from the date notice ia mailed by I.ender to Borrower that the insarance carrier ofl'era to aettle a claim for € insurance benefits, Lender is suthorized to rnllect and apply the insurance praceeda at Lender'a option either to reetoration or repair of the ~ Ptoperty or the sums recured by thie Mortgage. ~ Unlees L.ender and Borrower otherwise agree in writing, any euch application of proceeda to principal ehall not e:tend or poatpone the due date of the monthly inetallmente referred to in paragraphe 1 and 2 hereof or change the amount of auch inetallmente. If under paragraph 18 hereof the Property is acquired by L.ender, all right, tide and intereat of Borrower in and to any ineurance policiee and in and to the proceeda thereof resulting from damage to Property prior to the sale or aaquisition ehaU paee to Lender to the e:tent of the auma secured by thie Mortgage immediately prior to such sale or aoquiaition. 6. Preservetion and Maintenance olProperty; I.eeeeholde; Condominuma; Planned Unit Developwents. Borrower shall keep ~ the Property in good repair and ahall not commit waete or permit impairment or deterioration of the Property and shall comply with the provieione of any lease if thie Mortgage ie on a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, ~ Borrower shall perform all of Borrower's obligations under the declaration or covenanta creatinqor governing the rnndominium or planned unit development, the by-lawe and regulationa of the condominium or planned unit development, and conatituent documente. If a condominium or planned unit development rider ia executed by Borrower and recorded together with thie Mortgage, the oovenante and ; agreemente of auch rider shall be incorporated into and ehall amend and aupplement the covenants and agreemente of thia Mortgage se if the ~ rider were a part hereoL ~ 7. Prntection ot I.ender'. Security. If Borrower fails to perform the oovenante and egreemente oontained in this Mortgage, or if any r action or proceeding ia commenced which materially atfects Lender'a interest in the Property, including, but not limited to, eminent domsin, - insolvency, oode enforcemenL, or arrangements or pmceedings involving a banlwpt or deoedent, then Lender at I.ender's option,upon ~ " notice to Borrower may make ruch appearancea, disburse euch sums and take such ection as is neceseary to protect Lender'~ interest, ~ inclnding, but not limited to, diabunement of reasonable attorney'a fees and entry upon the Property to make repairs. If I.ender reqaired mortgage insurance as a condition of malcing the foan secured by thia Mortgage, Borrower ehall pay the premiums required to maintain ; snch ineuraace in effect until ench time as the requirement for such ineurance terminates in aceordance with Borrower's and I.ende~s s written agreement or epplicable I.~w. Borrower ehall pay the amount of all mortgage ineurance premiums in the manner pmvided under paragraph 2 hereoL ~ My amounte diebnrsed by Lender pereuent to this paragraph with interest thereon, shall become additiona) indebtedneea of Borrower aecured by thia Mortgage. Unless Borrower and Lender agree to other terms of payment, euch amounfs shell be payable upon 5 notice from Lender to Borrower requeating payment thereof, and shall bear interest from the date of disbursen?ent at the rate payable from • w time to time on outstending principal under the Note unless payment of interest at such rate would be oontrary to applicabie law, in which ~ event euch amounts she1) bear intereat at the highest rate permisaible under applicable law. Nothing contained in this paragraph 7, shall ` ~ require L,ender to incur any eupenee or tel~e any action hereunder. ~ 2~7 ~i2 . - ~ ~ : - _ . - - - _ : ~ _ . _